TITLE: Title
Buyer Identified Homeownership Program
PURPOSE: The purpose of this item is for the Board to consider adding the Buyer Identified Homeownership Program to the Town's affordable housing programs.
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DEPARTMENT: Manager's Office
CONTACT INFORMATION: Nate Broman-Fulks, Assistant to the Town Manager, 919-918-7314, nbroman-fulks@townofcarrboro.org
INFORMATION: The Buyer Identified Homeownership Program (BIHP) is a proposed program out of the Affordable Housing Fund. The intention of the program is to increase affordable homeownership opportunities in Carrboro and increase the permanently affordable housing stock. This program would be treated as a pilot-type program that would be evaluated and refined after it is used, based on the Town and applicant's experience.
BIHP is designed for situations where residents are working with nonprofit affordable homeownership providers to find an affordable home, but are unable to find an available home that fits their needs. This could be because the resident needs handicap accessibility throughout the house and none of the homes available have those features, or they simply need a three bedroom home and all that are available at that time are one and two bedroom homes. Whatever the case, this program provides a framework for assisting these residents by providing grant subsidies to the nonprofit they are working with to purchase a market rate home that will then be incorporated into the permanently affordable housing stock.
Example
Jane is looking to purchase a home in Carrboro. She is working with the Community Home Trust and has been determined to be mortgage ready. She needs a three bedroom home to accommodate her family, but the Home Trust currently only has one and two bedroom homes available. Jane and/or the Home Trust find a three bedroom townhouse on the market for $160,000. Jane can only afford a mortgage of $110,000. Therefore, if the house ...
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